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Wednesday
Feb242010

Interest Free? No Thanks

President Barack Obama's proposal to increase small-business lending is "an interesting idea" but does not take into account signs that small businesses do not want to increase their debt, Catherine Rampell writes. "Just increasing the supply of credit available to businesses won't be enough to jump start lending. Businesses have to want that credit, too," Rampell writes.

Having recently completed a series of focus groups with small business owners, I can attest that this is very true. Most businesses are looking for payback in 18 months or less and do not want any long term debt obligations regardless of the attractiveness of the offer.

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